WallStSmart

American Eagle Outfitters Inc (AEO)vsBurlington Stores Inc (BURL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Burlington Stores Inc generates 110% more annual revenue ($11.55B vs $5.50B). BURL leads profitability with a 5.3% profit margin vs 3.5%. BURL appears more attractively valued with a PEG of 2.99. BURL earns a higher WallStSmart Score of 63/100 (C+).

AEO

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 5.5Value: 4.7Quality: 6.3
Piotroski: 2/9Altman Z: 3.28

BURL

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 6.7Quality: 5.8
Piotroski: 4/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEOSignificantly Overvalued (-221.7%)

Margin of Safety

-221.7%

Fair Value

$7.41

Current Price

$16.87

$9.46 premium

UndervaluedFair: $7.41Overvalued
BURLUndervalued (+17.8%)

Margin of Safety

+17.8%

Fair Value

$371.98

Current Price

$318.60

$53.38 discount

UndervaluedFair: $371.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEO3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.2810/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

BURL2 strengths · Avg: 9.0/10
Return on EquityProfitability
38.4%10/10

Every $100 of equity generates 38 in profit

EPS GrowthGrowth
20.3%8/10

Earnings expanding 20.3% YoY

Areas to Watch

AEO4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.342/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.0%2/10

Earnings declined 7.0%

BURL4 concerns · Avg: 3.3/10
P/E RatioValuation
32.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.3x4/10

Trading at 11.3x book value

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

PEG RatioValuation
2.992/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AEO

The strongest argument for AEO centers on Altman Z-Score, P/E Ratio, Price/Book.

Bull Case : BURL

The strongest argument for BURL centers on Return on Equity, EPS Growth. Revenue growth of 11.3% demonstrates continued momentum.

Bear Case : AEO

The primary concerns for AEO are Profit Margin, Piotroski F-Score, PEG Ratio. Thin 3.5% margins leave little buffer for downturns.

Bear Case : BURL

The primary concerns for BURL are P/E Ratio, Price/Book, Profit Margin.

Key Dynamics to Monitor

BURL carries more volatility with a beta of 1.70 — expect wider price swings.

BURL is growing revenue faster at 11.3% — sustainability is the question.

AEO generates stronger free cash flow (55M), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BURL scores higher overall (63/100 vs 52/100) and 11.3% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Eagle Outfitters Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

American Eagle Outfitters, Inc. is a specialty retailer offering clothing, accessories, and personal care products under the American Eagle and Aerie brand names. The company is headquartered in Pittsburgh, Pennsylvania.

Burlington Stores Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Burlington Stores, Inc. is a branded apparel retailer in the United States. The company is headquartered in Burlington, New Jersey.

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